Excess Inventory Recovery

We need to face one fact in this post, and that is most all OEM and CM companies do not have a dedicated employee for handling excess inventory.  In fact, this important aspect of the business usually gets added to someone’s job description that also manages several other part of the business.  I know that when finance gets involved with excess, it is assigned or dealt with very quickly.  Now why do you think that is?  It happens quickly, because finance understands how excess inventory can negatively impact a balance sheet.  Since every company has excess, what should they do with it? Well, they need to figure out how to maximize their ROI when getting rid of it. There are several ways that companies deal with excess inventory.  Some just discard it and use it as a write off.  Others might “lot” sell it, or “fire” sell it, but this usually only amounts to pennies on the dollar, which is not going to generate any sort of real ROI.  Then there are the companies that take the time to sell it based on demand in the market.  This is by far the best option as long as the company selling doesn’t need any return on the excess immediately. There are several companies out there that deal in excess inventory, buying, selling, etc.  Then there are companies like EDX which uses advanced technology to maximize your return with complete transparency. 
December 22, 2016 In: All Posts Comments (None)

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